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1992 (5) TMI 19 - SC - Central ExciseWhether it be the manufacturing cost plus profit basis or the price basis the officer determines the value on the facts of the individual case without taking into account similar considerations in the case of other manufacturers? Held that:- The tariff value has been notified under Section 3(2) for valid reasons and on germane grounds having a nexus to the 'value' of the goods and the High Court erred in accepting the assessee's plea that "the notifications are arbitrary, perverse and display a non-application of mind on the part of the authorities as the tariff values fixed are unrelated to the value or price or the manufacturing cost and manufacturing profit of the products". That the weighted average so fixed exceeds the manufacturing cost and profit of a particular manufacturer, can be no reason for doubting its validity. Equally, there is no acceptable logic in the High Court's suggestion that it should be fixed at the lowest of the prices at which the manufacturer is able to sell his goods in the wholesale market. To apply such a measure will restrict the fixation of the value at figures even less than those that can be arrived at under Section 4. The tariff values of sulphuric acid and chlorine were validly fixed under the impugned notifications dated 28-11-1970 and 26-7-1971. Section 3(2) of the Act as well as the notifications are declared valid and constitutional. The judgment of the High Court under appeal is set aside.
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